Optimal pension funding with demographic instability and endogenous returns on investment

This paper tries to explore some optimal funding policies for pension systems in a general equilibrium setting where funding affects returns on investment and wages through its impact on capital formation. This is done in the context of irregular demographic evolutions such as those expected in developed countries for the next century. Particular attention is given to the intergenerational welfare criterion which is used for designing optimal policies. It appears that funding receives low justification with a welfare criterion which assumes a high substitutability between consumptions of successive cohorts, implying a low concern for intergenerational equity. Funding is highly justified in the opposite case where a high level of consumption for some cohorts is not considered as a compensation for low consumption by others. However the optimal patterns of transfers and savings which are found in this latter case are not straightforward. Some simpler funding rules are explored in the last section of this paper, which show that non-optimal funding may imply, on the contrary, a high level of inequality between subsequent generations.Paper presented at the ISPE-conference Fiscal implications of an ageing population, May–June 1990 at Vaalsbroek, The Netherlands. We thank Pierre Pestieau for his remarks on a first draft of this paper. We also thank for their comments our two discussants Carol Propper and Lans Bovenberg, as well as other participants to the ISPE Conference. Any errors are, of course, ours.     

A stochastic version of the malthusian trap model: Consequences for the empirical relationship between economic growth and population growth in LDC's

A stochastic version of the Malthusian trap model relating the growth rate of income per capita to the population growth rate of a given country is described. This model is applied to the a priori evaluation of the cross‐sectional correlation between these two growth rates under two additional assumptions: i) the relations in the model at national levels include country‐specific and time‐invariant random components, and ii) these growth rates are measured with a certain degree of temporal aggregation. It is shown that these two assumptions can explain near‐zero correlations between the two growth rates even if there exist a strongly negative effect of population growth on economic growth. However it is not clear whether these assumptions fully explain such insignificant correlations. Indeed, the implementation of the model is complicated by the structural shifts which are likely to occur in the equations over the course of the demographic transition.     

The weight of the rich: improving surveys using tax data

The Journal of Economic Inequality - Household surveys often fail to capture the top tail of income and wealth distributions, as evidenced by studies based on tax data. Yet to date there is no...     

Toward Probabilistic Prediction of Flash Flood Human Impacts

This article focuses on conceptual and methodological developments allowing the integration of physical and social dynamics leading to model forecasts of circumstance‐specific human losses during a flash flood. To reach this objective, a random forest classifier is applied to assess the likelihood of fatality occurrence for a given circumstance as a function of representative indicators. Here, vehicle‐related circumstance is chosen as the literature indicates that most fatalities from flash flooding fall in this category. A database of flash flood events, with and without human losses from 2001 to 2011 in the United States, is supplemented with other variables describing the storm event, the spatial distribution of the sensitive characteristics of the exposed population, and built environment at the county level. The catastrophic flash floods of May 2015 in the states of Texas and Oklahoma are used as a case study to map the dynamics of the estimated probabilistic human risk on a daily scale. The results indicate the importance of time‐ and space‐dependent human vulnerability and risk assessment for short‐fuse flood events. The need for more systematic human impact data collection is also highlighted to advance impact‐based predictive models for flash flood casualties using machine‐learning approaches in the future.     

The Transformative Power of Youth Grants: Sparks and Ripples of Change Affecting Marginalised Youth and their Communities

This study, based on research into a youth empowerment initiative in Canada, examines the transformational power of youth grants for marginalised youth and their communities. The positive changes on individual youth included increased confidence and skills, as well as strengthened social interactions between youth, and involved adults and organisations. To leverage grant impact, we identify the critical role of creating accountability at multiple levels, promoting sharing among grantees, and fostering allies and system thinkers. The evaluation points to the potential of grants for changing community's perception that youth are incapable of fostering community youth development.     

A stochastic version of the Malthusian Trap Model: consequences for the empirical relationship between economic growth and population growth in LDC's

A stochastic version of the Malthusian trap model relating the growth rate of income per capita to the population growth rate of a given country is described. This model is applied to the a priori evaluation of the cross-sectional correlation between these 2 growth rates under 2 additional assumptions: 1) the relations in the model at national levels include country-specific and time-invariant random components, and 2) these growth rates are measured with a certain degree of temporal aggregation. It is shown that these 2 assumptions can explain near-0 correlations between the 2 growth rates even if there exist a strongly negative effect of population growth on economic growth. However, it is not clear whether these assumptions fully explain such insignificant correlations. Indeed, the implementation of the model is complicated by the structural shifts which are likely to occur in the equations over the course of the demographic transition.     

Age structure and capital dilution effects in neo-classical growth models

This paper reexamines the problem of the relationship between demographic growth and per capita income in neo-classical growth models with age-structured populations. It is suggested that, when they assume a constant rate of capital depreciation, such models overestimate the negative impact of population growth through capital dilution effects. With more realistic depreciation schedules, the ageing of the capital stock which results from lower growth implies a higher overall depreciation rate, which reduces benefits from lower capital dilution. The implications of this observation are examined for the existence of an optimum population growth rate, for models with heterogeneous capital, and for models where capital obsolescence is not fixed but is allowed to vary.This article is a modified version of a paper presented at the First Annual Meeting of the European Society for Population Economics, Rotterdam, September 1987. I am indebted to the anonymous referees for helpful comments and suggestions and to Linda Sergent for revising the English text.     

A simple model for interpreting cross-tabulations of family size and women's labour force participation

Simple 2×2 contingency tables cross-tabulating family size and activity status of mothers are analyzed with a logistic or log-linear model whose parameters can be interpreted as, respectively, the intrinsic value given to work by mothers, the value given to large families, and the degree of incompatibility between work and child care. An analysis of French data for 1968 and 1982 suggests that it is the increased value given to work which accounts best for activity and fertility changes over this time period, variation of the two other parameters playing only a minor role. The same result is observed, cross-sectionally, when analyzing fertility and activity of women across a sample of French couples in 1982 stratified by education levels of both parents. But this simple explanation of activity and fertility differentials does not apply when analyzing fertility and activity differentials across EEC countries, using data from the EUROSTAT Labour Force Survey of 1990.L'article utilise un modèle logistique ou log-linéaire pour analyser des tableaux de contingence élémentaires à quatre cases croisant activité féminine et taille de la famille. Les paramètres de ce modèle s'interprètent respectivement comme le degré de valorisation du travail, la préférence pour la famille nombreuse, et le degré d'incompatibilité entre travail et charge de famille. L'analyse des données françaises de 1968 et 1982 suggère que c'est la valorisation croissante du travail qui explique le mieux les mouvements joints de l'activité et de la fécondité au cours de cette période, les variations des deux autres paramètres ne jouant qu'un rôle mineur. Le même résultat se retrouve, en coupe transversale, si on analyse l'activité et la fécondité dans un échantillon de ménages français de 1982 stratifié par niveaux d'éducation des deux parents. Mais cette explication simple des variations de l'activité et de la fécondité ne s'applique plus si on s'intéresse aux différences d'activité et de fécondité entre pays de la CEE, mesurées à travers l'Enquête sur la Force de Travail coordonnée par EUROSTAT en 1990.     

Access to social protection among people with disabilities: Evidence from Viet Nam

Although people with disabilities are frequently targeted as key beneficiaries of social protection, little is known on their access to existing programmes. This study uses mixed methods to explore participation in disability‐targeted and non‐targeted social protection programmes in Viet Nam, particularly in the district of Cam Le. In this district, social assistance and health insurance coverage among people with disabilities was 53 per cent and 96 per cent respectively. However, few accessed employment‐linked social insurance and other disability‐targeted benefits (e.g. vocational training, transportation discounts). Factors affecting access included the accessibility of the application process, disability assessment procedures, awareness and the perceived utility of programmes, and attitudes on disability and social protection.